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KOSPI just lost 16% in two days — here's what that did to leveraged funds and undervalued stocks.
Korean markets suffered their sharpest two-day drop in recent memory, wiping out 864.5 trillion won in market value on renewed AI chip-cycle fears and reports of Chinese lithography-equipment progress. Single-stock leveraged ETFs on Samsung Electronics and SK Hynix have posted losses of up to 70% since listing, while bond-mixed alternatives holding the same stocks cut losses roughly in half. Meanwhile, 75% of KOSPI stocks now trade below book value, a record high for the year, even as margin loan balances tick back up. This episode breaks down what retail investors are actually holding and how different products responded to the same shock.

Sources:

ETF Polarization Amid Semiconductor Correction — Seoul Economic Daily, 2026-07-29
75% of KOSPI Trades Below Book Value as Undervalued Stocks Surge — Seoul Economic Daily, 2026-07-29
"75% of Leverage Unwound, 56 Trillion Won in Losses" — Seoul Economic Daily, 2026-07-29
864 Trillion Won Wiped Out Before F4 Emergency Meeting — Seoul Economic Daily, 2026-07-29

About AI PRISM:
AI PRISM is Seoul Economic Daily's WAN-IFRA award-winning newsroom AI series, delivering Korean economic news adapted for global audiences. Episodes are produced with AI assistance and reviewed by a human editor.

Tags:
#KOSPI #ETF #RetailInvestors #LeveragedETF #PBR #SemiconductorStocks #AIPRISM #SeoulEconomicDaily #WANIFRA

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00:19다음 영상에서 만나요
00:30Let's look at what this means for retail investors in Korea
00:33Cospi's plunge was driven by renewed doubts about the AI semiconductor cycle
00:38and reports that China may be closing the chip equipment gap faster than expected
00:43Individual investors, who had been net buyers for three straight sessions,
00:47flipped to net sellers as panic selling emerged
00:51Leveraged and inverse products amplified the damage far beyond the index move itself
00:56Here's what the numbers show
00:58Cospi fell 5.98% to 5,663.24
01:04with 864.5 trillion won, about $627 billion, in market value gone in two days
01:13Single stock leveraged ETFs tracking Samsung Electronics and SK Hynix
01:19showed paper losses between 59% and 70% since listing, according to Mireille Asset
01:26J.P. Morgan estimates 75% of leveraged ETF positions have now been unwound, with total retail losses near $38
01:36.7 billion
01:38Meanwhile, bond-mixed ETFs holding the same stocks alongside government bonds limited losses to about half that of pure equity
01:46funds
01:4875% of Cospi listed stocks now trade below a price-to-book ratio of 1
01:53The highest share this year
01:55Margin loan balances rose slightly to 33.19
02:06So what does this mean for retail investors?
02:09Earlier, we said some leveraged products lost nearly 60%
02:14That's the real cost of chasing amplified exposure in a volatile chip cycle
02:20Bond-mixed alternatives cut losses roughly in half over the same period, which is worth knowing before adding new leverage
02:27This isn't advice to buy or sell
02:30It's a reminder to know exactly what kind of product you're holding and how much it can move
02:35That's today's AI Prism, Retail Investors
02:39This episode was produced with AI assistance based on Seoul Economic Daily reporting and reviewed by a human editor
02:46AI Prism is a Juan Ifra Award-winning series
02:50We'll be back tomorrow
02:52You've been listening to AI Prism from Seoul Economic Daily
02:58ELECTRONICAL
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